Americans Today Are Rethinking the Notion of What It Means to Be
Americans Today Are Rethinking the Notion of What It Means to Be "Old" and 65 is Out
Increased longevity and life expectancy are changing Americans’ perception of what it means to be "old," causing many to reevaluate their retirement plans. A new study, commissioned by
65 is Out, 75 is In
Though the majority of respondents agree that old age does not begin until age 75, most Americans still think people should start receiving Social Security benefits between ages 63 and 65, with Generation Y respondents believing the benefits should begin as early as 61.
New Ideas of Work and Retirement
Despite fears and concerns about outliving their money, Americans appear to be optimistic about retirement. The study found that this new perception of old age is further underscored by a shift toward a more active retirement. Indeed, 71 percent of study respondents say they plan to work while in retirement, and another 60 percent would like to take up a new career altogether. In fact, only seven percent of study respondents view this period as a time to unwind.
"Delaying retirement provides individuals the opportunity to further grow their personal portfolio," said Andy Gill, senior vice president, Investor Services,
This new outlook on retirement also shows that nearly half (45 percent) of those surveyed see retirement as a time to give back to their family and community. With potentially more than a decade to live in retirement before reaching "old age," many respondents believe that they can maintain a youthful lifestyle by using the time to volunteer.
Not Ready to Retire? Tips for Saving at any Age
"No matter the circumstance, the bear market or a late start, it’s important to look to the future and identify opportunities to increase your next egg–there’s always something you can do," Gill reminds.
Now ---------------------------------------------------------------------- 1. Create a savings plan. 2. Take advantage of all your options. 3. Invest wisely. Ten years to go ---------------------------------------------------------------------- 1., Start thinking in detail--when you want to retire, where you would like to live, and what you want to do. Answering these questions will help you figure out how much all of it will cost. 2. Share your retirement dreams with your spouse. 3. Increase your savings and reduce your borrowing. Consider if it makes sense to accelerate your mortgage payoff. 4. Review your Social Security benefits. Have an idea of what you can expect and be you're your record is up to date. 5. Think about health care and long-term care insurance. If it makes sense for you, don't wait too long to lock in lower premiums. According to the Rethinking Retirement study, medical expenses not covered by insurance are everyone's top worry regarding retirement security. Two to Five years to go ---------------------------------------------------------------------- 1. Continue to refine the "when, where, what and how much." If you're not on track, be realistic about your options--you can save more now, postpone retirement and/or spend less or work part-time in retirement. 2. Revisit your asset allocation and start thinking about a portfolio withdrawal strategy. 3. Fine-tune your retirement budget. List sources of income and expenses in as much details as possible. Separate expenses into two categories--discretionary and non-discretionary. 4. If you plan to move, create a "short list" of desired retirement locations. Last 12 months ---------------------------------------------------------------------- 1. Check up on your Social Security benefits. 2. Finalize your cash flow budget and your withdrawal strategy. 3. Review any existing insurance policies to be sure you're not paying too much for the wrong kind of coverage. 4. Give notice to your employer at the appropriate time. 5. Consider consolidating accounts to help simplify your financial life going forward. In retirement ---------------------------------------------------------------------- 1. Review your budget annually and combine your cash flow planning with your portfolio rebalancing. 2. As age 70 1/2 approaches, don't forget you'll need to start taking required minimum distributions from your traditional IRA. You have untilApril 1 of the following year to start, but that means taking two distributions in the first year. 3. Continue to monitor your investment performance and, in addition to rebalancing annually, think about periodically shifting your strategic asset allocation as time goes by. 4. Be sure to stay well diversified. 5. Periodically review all the categories of your insurance coverage. 6. Be sure your estate and gifting plan, account titling and beneficiary designations are up to date.
For More Information
More information on the study is available at rethinkingretirement.schwab.com, along with a self comparison tool (rethinkingretirement.schwab.com/survey) and an ongoing series of cross-generational discussions on retirement.
About the Study
"Rethinking Retirement" was initiated by Schwab in collaboration with
About Charles Schwab
About Harris Interactive(R)
Harris Interactive is a global leader in custom market research. With a long and rich history in multimodal research, powered by science and technology,
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